Friday preview: Analysts bet on annual revenue fall for bwin.party
Gaming website bwin.party Digital Entertainment is expected to report a drop in annual revenues and profits Friday.
Gaming website bwin.party Digital Entertainment is expected to report a drop in annual revenues and profits Friday.
Analysts at Investec predict 2012 revenues to fall to €803m from €816m a year earlier and profit before tax to decline to €113m from €174m.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are pegged to drop 18% to €163.1m, implying a 20.3% margin.
Investec said the outlook was mired by the possibility Germany could outlaw online gambling.
"While the group is highlighting the 'positive developments' around German regulation (securing a Schleswig-Holstein casino/poker licence in December 2012), there is a possibility that the German Land (since a change of government) could secure European Commission approval to join the German-wide Treaty (as accepted by all other 15 Lnder) that effectively outlaws online gaming (placing, we estimate, up to €100m of revenue under threat)," the broker said.
"There is no certainty around this, but the Land is keen to revoke the law enacted under a previous regime."
Investec issued the company's stock a 'hold' rating and a target price of 100p.
Friday March 15
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